Organization Design
Organizational Design
The five approaches to structure is fundamental, divisional, matrix, team-based, and virtual network. Functional, divisional, and matrix are traditional approaches that rely on the chain of command to define departmental groupings and reporting relationships along the hierarchy, (Daft, p.318, 2013). Functional structure is where all the people in different departments all work towards to the top of the organization. They look at the organization as a whole. Divisional structure is where everyone works on the same thing at one time. When looking at functional and divisional structures together, the departments are grouped together and work together and work on all products, in a divisional structure, separate departments are created within each division, (Daft, p.320, 2013). Matrix structure combines aspects of both functional and divisional structures simultaneously, in the same part of the organization, (Daft, p.322, 2013). With the matrix structure the employee’s reports to two bosses, but on one side, there are functional departments that have similar skills, and on the other side they are centralized like divisional structure. Team approach is a flexible and easier structure. The team approach gives managers a way to delegate authority, push responsibility to lower levels, and be more flexible and responsive in a complex and competitive global environment, (Daft, p.323, 2013). You have two different teams’ cross-functional and permanent teams. Cross-functional teams have different problems. Permanent teams meet the same way but talk about one specific thing. Cross-functional teams can provide needed horizontal coordination to complement an existing divisional or functional structure, (Daft, p.324, 2013). The virtual network approach pertains to outsourcing. Companies would look for companies in another country to do their work for them. Looking at all structures, they all kind of connect with similar ways to a certain extent, but are all
The five approaches to structure is fundamental, divisional, matrix, team-based, and virtual network. Functional, divisional, and matrix are traditional approaches that rely on the chain of command to define departmental groupings and reporting relationships along the hierarchy, (Daft, p.318, 2013). Functional structure is where all the people in different departments all work towards to the top of the organization. They look at the organization as a whole. Divisional structure is where everyone works on the same thing at one time. When looking at functional and divisional structures together, the departments are grouped together and work together and work on all products, in a divisional structure, separate departments are created within each division, (Daft, p.320, 2013). Matrix structure combines aspects of both functional and divisional structures simultaneously, in the same part of the organization, (Daft, p.322, 2013). With the matrix structure the employee’s reports to two bosses, but on one side, there are functional departments that have similar skills, and on the other side they are centralized like divisional structure. Team approach is a flexible and easier structure. The team approach gives managers a way to delegate authority, push responsibility to lower levels, and be more flexible and responsive in a complex and competitive global environment, (Daft, p.323, 2013). You have two different teams’ cross-functional and permanent teams. Cross-functional teams have different problems. Permanent teams meet the same way but talk about one specific thing. Cross-functional teams can provide needed horizontal coordination to complement an existing divisional or functional structure, (Daft, p.324, 2013). The virtual network approach pertains to outsourcing. Companies would look for companies in another country to do their work for them. Looking at all structures, they all kind of connect with similar ways to a certain extent, but are all
References: Daft, R. L. (2013). Management (11th ed.). [Vital Source digital version]. Mason, OH: South-Western.